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Quorum Concerns? Include This Proposal in Your Proxy Statement

By Randi Morrison posted 08-10-2023 05:18 PM

  

In “Public Company Stockholder Meeting Adjournment Proposals,” Goodwin discusses its observations of an increasing number of quorum shortfalls (or anticipated shortfalls) for annual and special meetings and relevant regulatory requirements for adjourning a meeting to solicit additional votes. Importantly, notwithstanding state law and corporate bylaws that often provide companies with great latitude to adjourn meetings on their own, the SEC reportedly has taken the position that only stockholders may authorize a meeting adjournment via a vote on a proper proposal included in the relevant proxy statement. The memo addresses additional considerations and includes a model sample adjournment proposal.

See our 2019 report: “Plan for Impacts of Charles Schwab Non-Vote on Uninstructed Shares” and additional information & resources on our Proxy PlumbingIndividual (Retail) Investors and Annual Meeting/Proxy Statement pages.

                                           This post first appeared in the weekly Society Alert!

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